Lead Opinion
ALDRICH, D. J., delivered the opinion of the court, in which CLAY, J., joined. MERRITT, J. (pp. 894-97), delivered a separate dissenting opinion.
OPINION
Plaintiff-Appellant Nightclubs, Inc. (“Nightclubs”) brought this action against the City of Paducah, Kentucky; the City Commission of the City of Paducah, Kentucky; Albert Jones, in his official capacity as the Mayor of Paducah, Kentucky; and James Zumwalt, in his official capacity as the City Manager of Paducah, Kentucky (collectively “the City” or “Paducah”). Pursuant to 42 U.S.C. § 1983, Nightclubs challenges the constitutionality of a Padu-cah ordinance that provides for the licensing and regulation of sexually oriented businesses and their employees. The District Court denied Nightclubs’ motion for a preliminary injunction in substantial part. Nightclubs appeals that denial, arguing that the ordinance’s licensing scheme amounts to an unlawful prior restraint in violation of the First and Fourteenth Amendments to the United States Constitution. This Court has jurisdiction pursuant to 28 U.S.C. § 1291 and § 1292(a)(1). Because the District Court erred in not enjoining the licensing scheme, we REVERSE, VACATE, and REMAND.
I.
Nightclubs, Inc., doing business as “Regina’s House of Dolls,” is a Kentucky corporation that owns and operates an adult entertainment business featuring performances by female dancers. The business has been operating continuously in Padu-cah, Kentucky since 1987. On August 11, 1998, the City of Paducah enacted Ordinance No. 98-8-5925 (“the ordinance”), which is designed to regulate sexually oriented businesses. Regina’s House of Dolls qualifies as an “adult cabaret” under § 11— 2(3) of the ordinance.
Section ll-7(a) provides as follows:
Upon receipt of an application properly filed with the Director and upon payment of the non-refundable application fee, the Director or his/her designee shall immediately stamp the application as received and shall immediately thereafter initiate an investigation of the application and the proposed sexually oriented business by all appropriate City departments and agencies. The City shall approve or deny the issuance of a license to an applicant within ten (10) business days after receipt of a completed sexually oriented business application.
Ord. § ll-7(a). Thus, once an applicant submits a “completed” business license application in accordance with § 11-6, the City Manager must immediately instruct various City departments to conduct the appropriate investigations.
Sections 11-15 and 11-17 govern appeals from the denial, suspension, or revocation of licenses. Section 11-15 provides that an aggrieved applicant may appeal the denial of a license to the Board of Commissioners (“the Board”) within ten- days of receiving notice that his or her application was denied. See Ord. § ll-15(b). The Board must hold a hearing on the appeal within ten days of the filing of the notice of appeal. Id. The applicant may be represented by counsel, present evidence, and cross-examine witnesses at the hearing; the City Manager has the burden to prove
Soon after the Paducah ordinance went into effect, Nightclubs filed this action, challenging the constitutionality of the ordinance both on its face and as applied.
II.
In deciding whether to grant a preliminary injunction, a district court must consider and balance four factors: (1) whether the plaintiff has established a substantial likelihood or probability of success on the merits; (2) whether there is a threat of irreparable harm to the plaintiff; (3) whether issuance of the injunction would cause substantial harm to others; and (4) whether the public interest would be served by granting injunctive relief. See Connection Distrib. Co. v. Reno,
III.
The sole issue raised on appeal is whether Paducah’s licensing scheme, on its face, contains adequate procedural safeguards as required by the First Amendment. We conclude that it does not.
As an initial matter, we note that Nightclubs has standing to bring a facial attack against the City’s licensing scheme.
A “prior restraint” exists when speech is conditioned upon the prior approval of public officials. See, e.g., Southeastern Promotions, Ltd. v. Conrad,
In Freedman, the Supreme Court invalidated a Maryland film censorship statute under the First Amendment because the statute lacked necessary procedural safeguards. Freedman,
In FW/PBS, the Supreme Court applied Freedman to a Dallas, Texas ordinance similar to the Paducah ordinance at issue here. The Dallas ordinance required sexually oriented businesses to pass municipal inspections in order to obtain mandatory licenses. FW/PBS,
Although the status of the third Freedman requirement remains unclear in the licensing context, this Circuit has previously noted that, under FW/PBS, at least the first two Freedman safeguards are essential for a licensing scheme to comport with the First Amendment. See East Brooks Books,
Nightclubs argues that Paducah’s ordinance lacks both of these mandatory safeguards. We agree. First, on its face, the ordinance fails to ensure that the City will decide whether to issue a license within a brief specified time period during which the status quo is maintained. Although the ordinance states that Paducah will approve or deny an application within ten days, the ordinance also states that no license will issue unless the City executes, and the premises passes, a variety of building inspections. See Ord. § ll-7(a). No specific time limits for completion of these inspections are placed on the “appropriate City departments and agencies.” Id. Further, the ordinance does not indicate that a license shall issue if any of the City departments fails to complete a mandatory inspection within a timely period.
Furthermore, the ordinance fails to preserve the status quo either during the administrative process for license renewals or pending judicial review of decisions to suspend, revoke, or not renew licenses. If Paducah chooses not to renew a sexually oriented business license, that business must cease operation immediately. The previous license does not remain in effect while an appeal proceeds before the Board or, later, while an action is pending in court. See Ord. §§ 11-10, 11-15. In addition, if the City suspends or revokes a license for one of the reasons provided in § 11-16, that decision will be stayed while an appeal proceeds before the Board, but it will not be stayed pending judicial review. See Ord. § ll-17(b), 11 — 17(f). Accordingly, the ordinance fails to maintain the status quo pending review as the First Amendment requires. See Freedman,
The second Freedman safeguard — the guarantee of prompt judicial review — is also lacking in this case. The ordinance provides that an applicant, or licensee whose license has been suspended or revoked, may seek a review of the Board’s decision “in any court of competent jurisdiction.” Ord. §§ 11 — 15(e), ll-17(f). Although Kentucky law does not provide for judicial appeals from administrative decisions, an aggrieved applicant or licensee may file “an original action” in Kentucky court. See K.R.S. § 23A.010(4) (review of administrative decision constitutes not appeal, but original action). The case then proceeds according to standard court rules, with the state court conducting a “limited trial de novo, including review of the record of the board and other evidence.” City of Covington v. Tranter,
This procedure for judicial review contains an even greater potential for indefinite delays than the Memphis scheme this Court found unconstitutional in East Brooks Books. See East Brooks Books,
The defendants argue, and the District Court concluded, that the requirement of prompt judicial review is satisfied because an aggrieved applicant or licensee may seek preliminary injunctive relief soon after filing an original action in Kentucky court. This argument both misinterprets a long line of legal precedent in the area of prior restraints and minimizes the importance of the First Amendment freedoms at stake. As previously discussed, Freedman, FW/PBS, and East Brooks Books require an assurance of prompt judicial review; a theoretical possibility of expeditious judicial review is not constitutionally sufficient. A guarantee of prompt judicial review is necessary “because undue delay results in the unconstitutional suppression of protected speech.” FW/PBS,
Moreover, this Circuit and a number of other circuits have held that a licensing scheme must reasonably ensure a prompt judicial determination, and not mere access to judicial review. See Baby Tam & Co., Inc. v. City of Las Vegas,
Like the Fourth and Ninth Circuits, we do not read Justice O’Connor’s plurality opinion in FW/PBS as relaxing Freedman’s requirement of “a prompt final judicial decision.” Freedman,
Indeed, if mere access to a judicial forum were sufficient, then the second Freedman safeguard would be rendered virtually meaningless. See Baby Tam,
The phrase “judicial review” compels this conclusion. The phrase necessarily has two elements — (1) consideration of a dispute by a judicial officer, and (2) a decision. Without consideration, there is no review; without a decision, the most exhaustive review is worthless. In baseball terms it would be like throwing a pitch and not getting a call. As legendary major league umpire Bill Klem once said to an inquisitive catcher: “It ain’t nothin’ till I call it.” This is also true of judicial review. Until the judicial officer makes the call, it ain’t noth-in’.
Baby Tam,
Quite obviously, a municipality has no authority to control the period of time in which a state court will adjudicate a matter.
There are other measures that a city may institute to help ensure that judicial review will be expeditious. An ordinance may provide that an administrative transcript must be submitted to a court within a brief, specified period of time. Cities may also petition their state legislatures to pass laws that would obligate state courts to resolve municipal administrative appeals within a reasonably short period of time. While these measures may seem burdensome on first blush, they are reasonable in light of the great importance this nation attaches to the freedom of expression.
In sum, a system of prior restraint that fails to ensure a reasonably prompt decision by a judicial officer cannot be squared with the First Amendment. See Baby Tam,
IV.
We hold that the City’s licensing scheme, on its face, violates the First Amendment because it fails to provide that the City will make a licensing decision within a brief specified time period, that the status quo will be maintained during this period and during judicial review, and that a prompt judicial determination will be available. Accordingly, we conclude that the District Court erred in denying the plaintiffs request to preliminarily enjoin the licensing scheme, and we REVERSE and VACATE the District Court’s order in this regard. We also REMAND the case for a determination of whether the licensing scheme is severable from the remainder of the ordinance, and for further proceedings consistent with this opinion.
Notes
. The ordinance defines “adult cabaret” as "a night club, bar, restaurant, or similar commercial establishment which regularly fea-lures: (a) Persons who appear in a state of nudity or semi-nude; or (b) Live performance [sic] which are characterized by the exposure of 'specified anatomical areas' or by 'specified sexual activities’; or (c) Films, motion pictures, video cassettes, slides or other pho
. Although the ordinance continuously refers to "the Director” of the City, the ordinance defines the Director as “the City Manager or his/her designee.” As the City Manager is a defendant in this action, the Court will refer to this individual as "the City Manager” rather than "the Director.”
. Adult World, a store that sells books, magazines, and films, filed a companion case, but that case is not before us on appeal.
. Section ll-6(e)(13) requires a business license applicant to submit a notarized statement from the landowner of record “acknowledging that a sexually oriented business establishment is permitted to be located on the real property.’’ Ord. § ll-6(e)(13). The District Court found this provision burdensome because the landowner is not legally obligated to give such a statement, and concluded that the City had failed to show how this requirement furthers a substantial government interest. The District Court enjoined § 11-9, which deals with application and annual license fees, because Paducah had failed to justify the high cost of the fees. The City did not cross-appeal the District Court’s decision on these issues.
.. Paducah does not dispute that the plaintiff engages in activity protected by the First Amendment. See, e.g., Barnes v. Glen Theatre, Inc.,
. At oral argument, defendants' counsel "conceded" that the ordinance requires the City to issue a license within ten days even if the City fails to complete the necessary inspections. The dissenting opinion interprets this "concession” as a limiting construction that binds this Court. Both the City and the dissent fail to recognize that any limiting construction must "be made explicit by textual incorporation, binding judicial or administrative construction, or well-established practice.” City of Lakewood v. Plain Dealer Publ’g Co.,
. The District Court not only assumed that the state court would speedily issue injunctive relief, but also assumed that a judicial appeal would be brought on First Amendment grounds. There could, of course, be non-constitutional reasons for challenging the denial of a license, such as a dispute over whether the applicant falsely answered a question on the application. See Ord. §§ 11-7(a)(3), 11-8(2). Because any denial of a license would necessarily implicate the First Amendment, a licensing scheme must, on its face, ensure that all aggrieved applicants will be granted a prompt review — even those employees and business owners who do not have the wherewithal to launch costly constitutional attacks against the ordinance.
. The Eleventh Circuit recently held in Boss Capital, as the First and Fifth Circuits previously have held, that the mere availability of a judicial forum may satisfy the prompt judicial review requirement. See Boss Capital,
. Even if Justice O’Connor’s plurality opinion could be read as reducing the prompt judicial review requirement, it was joined by only two other justices, and, therefore, could not have overruled Freedman. Further, there is no doubt that in FW/PBS, Justice Brennan, along with the two justices joining his concurring opinion, unequivocally maintained that all three Freedman requirements should apply, including the requirement of "a prompt judicial determination." FW/PBS,
. Only a state legislature has the power to pass legislation requiring state courts to resolve certain types of cases within a particular period of time. For example, legislatures have mandated statutorily that, to ensure one's right to a speedy trial, courts must conduct criminal trials within a certain amount of time. See, e.g., K.R.S. § 421.510 (when defendant is charged with sexual abuse of a person under 16 years of age, defendant must be tried within 90 days of hearing); K.R.S. § 500.110 (Kentucky court must try prisoner facing indictment on additional charges within 180 days of prisoner's request); Ky. RCr. 9.02 (trials of all criminal defendants in Kentucky shall be held as promptly as possible).
. It is worth noting that cities have other ways to regulate the secondary effects of sexually-oriented businesses besides imposing licensing schemes upon them. The Paducah ordinance itself includes a number of subslan-tive regulations, such as a requirement that performers remain six feet away from patrons. Zoning requirements are another common way of regulating sexually-oriented businesses.
Dissenting Opinion
dissenting.
This appeal is a First Amendment facial challenge to Paducah’s ordinance regulating the issuance of licenses for sexually-oriented businesses, including nude dancing night clubs like plaintiffs. FW/PBS, Inc. v. City of Dallas,
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The ordinance itself is clear enough on its face. Section ll-79(a) requires an “immediate” investigation “upon receipt of an application,” and “the City shall approve or deny the issuance of a license to an applicant within ten (10) business days.” The ordinance on its face requires Paducah’s various administrative investigations and its final decision to take place “within ten (10) business days.” So I do not see any problem on the issue of delay. Even if there were some ambiguity, the City has conceded that it must finish its work and issue a decision within the 10-day period. If the City delays beyond that time, the plaintiff would be entitled immediately to an injunction.
In addition, the Court’s opinion proceeds under the incorrect assumption that challenging this city ordinance on its face is the appropriate course of action under the circumstances. It is true that our First Amendment case law has long allowed facial challenges to regulations implicating First Amendment rights, even in situations where facial challenges would otherwise be deemed inappropriate. As the Court noted in FW/PBS, “[although facial challenges to legislation are generally disfavored, they have been permitted in the First Amendment context where the licensing scheme vests unbridled discretion in the decision maker and where the regulation is challenged as overbroad.” FW/PBS, Inc. v. City of Dallas,
But that is not the end of the matter. It is the policy of the federal courts, even in the First Amendment context, to consider any limiting constructions which the government places on its own regulations. Even if the ordinance were not perfectly clear on its face that the City has only 10 days, the City has stated that its interpretation of the ordinance is that the City has 10 days within which to complete the inspections necessary for the issuance of a license — precisely the construction which Nightclubs, Inc. concedes completely satisfies the definite and specific time limits requirement of FW/PBS.
In a similar situation a few years ago, the Supreme Court was faced with a facial invalidity challenge on First Amendment grounds in conjunction with a concession by the government enforcement agency (in that case, the City of New York) that they would interpret the ordinance in a way which would cure the ordinance of its defects. The Court noted that “the city has interpreted the guideline in such a manner as to provide additional guidance to the officials charged with its enforcement.” Ward v. Rock Against Racism,
Rock Against Racism is not the only example of the federal courts’ reluctance to strike an ordinance, even on a First Amendment facial challenge, unless absolutely necessary. When the Supreme Court first announced its intention to allow First Amendment facial challenges, it tempered that decision by noting that “we believe that the overbreadth of a statute must not only be real, but substantial as well, judged in relation to the statute’s plainly legitimate sweep.” Broadrick v.
When we analyze the mandatory language of the ordinance itself and take into account the City’s own interpretation of its duties under the ordinance, I agree with the District Court that there is no problem here with delay. Our Court has gone out of its way to give the ordinance an unreasonable interpretation. Instead of emasculating the ordinance in order to hold it invalid, it is our responsibility to give the law a “rational and sensible construction” that will uphold its validity. American Tobacco Co. v. Patterson,
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The Court’s opinion also erroneously concludes that the City of Paducah ordinance fails to provide for “prompt judicial review” as required by FW/PBS, Inc. v. City of Dallas and our own Sixth Circuit precedent.
Nightclubs, Inc. bears the burden of proving to the court that the ordinance does not provide an avenue for prompt judicial review. See FW/PBS,
The Court relies on FW/PBS for the proposition that “prompt judicial review” requires more than access, without interference, to the judicial system. Instead, the Court essentially argues that in each case before it a federal court must examine the swiftness of a state court’s procedures, regardless of the language in the ordinance itself, before deciding whether a prompt judicial determination on the merits of the action could potentially be reached. I do not believe that to be the intention of the Court in FW/PBS.
-The broad language of FW/PBS holds only that “the possibility of prompt judicial review” or “an avenue for prompt judicial review” is required. See FW/PBS,
Even if a prompt judicial determination is required, the plaintiff in this case does not meet the burden of proving that it could not gain such a prompt judicial determination in some court of competent jurisdiction over the matter. In fact, the plaintiff does not even allege that in the case at hand the avenues for prompt judicial review were somehow inadequate. Access to the federal courts in this case was immediate, and a decision was rendered promptly (the ordinance was enacted on August 11, 1998, and after a hearing on October 1, 1998, the District Court- for the Western District of Kentucky entered a final order granting in part and denying in part plaintiffs motion for a preliminary injunction on October 29, 1998). In addition, the spirit of the Freedman test, that undue suppression of constitutionally protected speech be avoided, is satisfied on these facts because, as the District Court pointed out in this case, the plaintiff may be granted a temporary restraining order or injunction under the Kentucky procedural rules after it initiates the judicial action. For these reasons, I believe that we should not invalidate on its face the section of the City of Paducah ordinance which explicitly states that it allows prompt judicial review in any court of competent jurisdiction for its failure to provide prompt judicial review.
